Bitcoin has curled up into an outbreak in recent weeks. The cryptocurrency has been trading at a low of $ 9,000, ranging from strong support at $ 8,500 to strong resistance at $ 10,000.
Analysts said early enough that something would break.
According to a well-known trader, Bitcoin will break this consolidation down rather than up.
Bitcoin won't break $ 10,000 by 2021?
According to a report by the International Business TimesFormer Wall Street investor Tone Vays believes Bitcoin could get stuck in one area by the end of the year.
He said BTC could spend the rest of 2020 between $ 6,000 and $ 10,000 due to the crypto market's tight correlation with stocks. The suggestion is, of course, that Vays expects a possible correction to the S&P 500 or at least a flattening of share prices.
"As I have been saying for months, I have no reason to detach myself from my forecast earlier this year that Bitcoin will get stuck between $ 6,000 and $ 10,000 for most of this year," he said.
(embed) https://www.youtube.com/watch?v=tZxjvphj-98 (/ embed) (embedded content)
Vays is not the first to see a correlation between S&P and BTC.
A team of JP Morgan strategists led by Joshua Younger and Nikolaos Panigirtzoglo reported on the crypto market on June 11. The group found that since the March crash, cryptocurrencies have been trading more like risky assets than stocks – a significant change from recent years.
Two executives, Goldman Sachs, also made a similar observation. They found that BTC does not offer a consistent diversification advantage over traditional asset classes.
Even the largest Bitcoin bulls have observed the correlation.
As previously reported by Bitcoinist, the pseudonymous analyst “PlanB” found that Bitcoin has a correlation of 95% R squared with the S&P 500.
“It is great that #Bitcoin is fully in line with the interests of the FED (QE to save banks and businesses). BTC is correlated (95% R2) and integrated with US stocks (S & P500). BTC is therefore not an uncorrelated asset and is supported by FED measures, ”he commented on the matter.
Bloomberg Analyst begins to differ
As usual, not all analysts share the same opinion.
The bull case has recently gained strength through a new analysis by Mike McGlone, a senior commodity strategist at Bloomberg Intelligence.
McGlone said on June 26 that he considers Bitcoin a "cage bull set to break out" towards $ 13,000:
“The more contempt bulls should be for the better, the better the price of consolidating crypto should be. Falling bitcoin volatility reflects the maturation towards a digital version of gold. "
#Bitcoin a caged bull set for breakout with a resistance of $ 13,000 –
The more contempt bulls should be for the better, the better the price of consolidating crypto should tend. The falling bitcoin volatility reflects the maturation towards a digital version of gold. pic.twitter.com/2CqGEx95JS
– Mike McGlone (@ mikemcglone11) June 26, 2020
This happened shortly after he said BTC could reach $ 20,000 to $ 28,000 this year as the block reward for 2020 halves.
Featured Image from Shutterstock Price tags: xbtusd, btcusd, btcusdt Charts from TradingView.com There's a Chance Bitcoin Won't Break $10k Until Next Year: Analyst Explains Why
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